Mark Cuban, Yuga Labs, DeadFellaz, and Fvckrender, among others, have become prominent voices raising their concerns about OpenSea’s royalty tool discontinuation, sparking controversy and discussions regarding potential limitations — and even boycotts.
OpenSea’s choice to cease mandatory creator royalties — typically varying from 2.5% to 10% on secondary NFT sales — provoked a substantial reaction. Putting its ‘Operator Filter’ tool to bed will affect numerous NFT projects that rely heavily on royalty commissions as an injection of profit.
Dismay from Industry Insiders
A renowned figure in technology and OpenSea investor, Mark Cuban, conveyed his disappointment about the marketplace sunsetting its Operator Filter, stating that OpenSea’s decision to cease collecting and distributing NFT royalties is “a HUGE mistake”. Additionally, he asserted that this move weakens trust in the platform and negatively impacts the entire NFT realm.
Not collecting and paying royalties on NFT sales is a HUGE mistake by @opensea. It diminished trust in the platform and hurts the industry. And I say this as an @opensea investor @DevinFinzer
— Mark Cuban (@mcuban) August 18, 2023
Cuban has a long-standing profile and engagement in the crypto sector. Moreover, he previously participated in a significant funding round for OpenSea, thus, his statements hold weight.
The masterminds behind Bored Ape Yacht Club and CryptoPunks, Yuga Labs, similarly scolded OpenSea’s policy shift. Following the policy change, Yuga Labs is phasing out its NFT projects on the marketplace from February 2024 — a tremendous loss for OpenSea, considering that Yuga’s NFT collections have amassed more than $9 billion across the broader NFT market.
On @opensea‘s decision to sunset their Operator Filter. pic.twitter.com/ahc155WWkX
— Yuga Labs (@yugalabs) August 18, 2023
The founder of the NFT project DeadFellaz, Betty, backs Yuga’s decision, saying “Hollywood is out protesting for royalties while supposedly progressive web3 companies like OpenSea answering web2 problems are moving backwards on it and becoming part of the problem themselves. The result? The creators that provided them their profit turn their backs on them.” Additionally, she calls for a collaborative industry boycott against the secondary marketplace.
So are we boycotting @opensea then? If it doesn’t align with the incentives of creators, creators should move their business to places that do.
— BETTY (@betty_nft) August 18, 2023
Amid these backlashes, digital artist Fvckrender responded, ” If we stop using OpenSea, we sink, they sink”. The controversy surrounding OpenSea’s policy change is still ongoing. However, the ending of OpenSea’s royalty enforcement tool presents the importance of not only commissions but creator support, sustainability, and community unity in the dynamic NFT realm.
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*All investment/financial opinions expressed by NFT Plazas are from the personal research and experience of our site moderators and are intended as educational material only. Individuals are required to fully research any product prior to making any kind of investment.
The post NFT Titans Voice Concerns over OpenSea’s Royalty Tool Cessation appeared first on NFT Plazas.
